Con

fiden

tial

InstrumentSales.com

F l e x i b i l i t y | E x p e r i e n c eTr a n s i t i o n E x p e r t i s e | F o c u s

Capabilities Summary

ManufactureReman

2Page

ISS is a market leader in the electro-mechanical manufacturing and remanufacturing business. However, there is more to our company. We operate within a Total Cost Management culture. It is not enough to have the very lowest labor rate among our peers (although we certainly do). It is not enough to be a leader in Ship-Direct fill rates, or to have outstanding scores by our dealer partners for quality, delivery and customer service.

At our core we are an incredibly flexible company. We have built support structures throughout the organization focused on adaptation. That is because we want to offer options to clients with electrical-mechanical parts reaching the end of the product life cycle. Those solutions may include Remanufacture, Repair & Return or New Manufacture, or a blend of those three.

We are also flexible in managing new projects. The quality, speed and cost containment at which we remanufacture is matched by the quality, speed and cost containment at which we manage these types of project transitions.

Our consistent track record of success in transitioning products is a testimony to our culture of flexibility.

Physical Flexibility:

• ISS currently occupies 130,211 square feet over four locations. We have reserved 31% of that space to provide flexibility for future growth without significant changes in footprint.

• ISS locations are physically diversified in the event of disaster. Because we have locations in Portland, Seattle, Denver and Phoenix, we can coordinate new programs across multiple branches at request. Thus our clients can receive the convenience of buying from a single source, but benefit from the same catastrophic risk reduction of multiple vendors.

Key Statistics

Quality Certifications: ISO9001:2008 (Kent, Denver, Phoenix) ISO9001:2008; ISO/TS 16949:2009 Standard (Portland)

Number employees: 150

2009 reman throughput: 50,531

2008 reman throughput: 64,373

2007 reman throughput: 92,452

Maximum capacity without expanding facilities: 254,000

Facility locations: Portland, Kent (Seattle), Denver, Phoenix

Corporate/Manufacturing Headquarters: Portland

Reman Headquarters: Kent

Founded: 1949

Product expertise: Instrumentation, Audio, Fuel Systems, HVAC, Switchgear, Sensors and Body Electronics

Ownership: Privately Owned

Customer Diversification: 5,000 customers spread over 15 countries. Includes major vehicle manufacturers, specialty manufacturers, dealerships, jobber shops and repair shops.

Engineering Staff On-Site: Mechanical, Electrical, Software and Production Engineering; SolidWorks work stations

EDI Capable: Yes

Financial Flexibility

• ISS has successfully financed a tripling in growth in business over the last decade while never drawing more than 20% of its line of credit. ISS has the profitability, credit lines and outside financial backing to continue funding growth into the future.

Global Sourcing Manufacturing Distribution

A b o u t I S S : F l e x i b i l i t y

Engineering

Confidential

2 3Page

Reman Process Flexibility:

• ISS has developed its own proprietary software for managing the reman process. Therefore any changes requested by a client can quickly be implemented.

• ISS has also developed its own internal software to interact with the client’s system. Because data is not manually entered, there is less chance for human error. This flexibility has allowed ISS to be the only instrument reman center to go completely paperless with Delphi.

• Changes in testing parameters can be made on the fly through the use of trained personnel and user-friendly test equipment.

• ISS also has state-of-the-art high-volume testing processes, including Vision Systems.

• ISS maintains strong relationships with equipment builders who use off-the-shelf parts, allowing for quick modification.

Reman Personnel Flexibility:

• ISS has processes in place to regularly adjust staff to accommodate 30-40% variance between slow and peak season. ISS cross-trains every member of our reman center.

• The technician staff at our Kent facility average 7.3 years of experience. Non-tech staff average 9.5 years of experience. We feel this extensive experience gives us a bedrock of talent to allow for easy expansion.

• Our Reman benches are modular in design, which give us the ability to quickly reorganize to fit new product.

Engineering Flexibility:

• ISS has a staff of electrical, mechanical, manufacturing, and quality engineers on-site in our Portland location that uses Solidworks to develop custom engineering solutions for our clients.

Production Flexibility:

• ISS has the tooling, forecasting, purchasing, engineering, and supplier management expertise to scale production at any level, from dozens of units to tens of thousands.

Subassembly Flexibility:

• ISS has the staff and facilities in place to manage limited-production subassembly in our Portland Seattle locations.

Delivery Flexibility:

• We offer a variety of product delivery options. Ask us for more information:

Remanufacturing Warranty Exchange Customer Service

R e m a n u f a c t u r i n g M a n u f a c t u r i n g

Vehicle Manufacturer Warehouse

Vehicle Manufacturer

Distribution

Confidential

4Page

When component parts are not available to supply reman, we can make them

ourselves.

RemanISS Remanufacture is appropriate when:

• The Product mix is too high and volume too low to be cost effective to manufacture.

• The Product cost is significant and hence generates high Cost of Ownership to the End Customer.

• Product component availability becomes a concern for past design strategy.

• There are environmental concerns.

Conclusion

• ISS is a Market Leader in Reman and continues to score highly by our customers’ benchmarks.

• Reman is good for the environment.

• ISS has made significant investments in people, infrastructure and processes to ensure that our Reman Facilities are World Class.

R e m a n & M a n u f a c t u r i n g E x p e r i e n c eWhen it is not feasible or practical for you to manufacture an

Electro-mechanical Assembly, ISS can offer two options that

minimize both Cost of Ownership to the end Customer and

Total Cost Management for your comapany.

Sample products we currently remanufacture

Confidential

4 5Page

ManufactureISS Manufacture is appropriate when:

• The Product mix is too high and volume too low to be cost effective for your company to manufacture.

• It is a service part, and the cost is minimal and hence generates a low Cost of Ownership to the end Customer.

• The Product is considered ‘non-strategic’ to your company’s Core Business Strategy.

Conclusion

• ISS has developed its Business Model to focus on low volume/high mix manufacturing. This allows ISS to be more flexible and cost effective to support such programs.

• By allowing ISS to focus on these non-strategic parts, your company’s engineers, purchasers and logistics teams are freed to focus on your company’s core competencies.

R e m a n & M a n u f a c t u r i n g E x p e r i e n c eWhen it is not feasible or practical for you to manufacture an

Electro-mechanical Assembly, ISS can offer two options that

minimize both Cost of Ownership to the end Customer and

Total Cost Management for your comapany.

Sample products we currently manufacture

Confidential

A critical part of our drive toward Total Cost Management is our measures. We prominently post measures such as those shown at the left, which include costs, backlogs, and our performance against other reman centers. Because of this, we consistently outperform the other shops in cost (labor + parts) and are always among the leaders in speed of Ship Direct Delivery.

* Sales and other data deleted and altered in this chart to maintain confidentiality.

Reduce Process Costs & Improve Process Quality

ISS has developed our own extensive proprietary reman software system that gives us a major advantage over other reman centers:

• Our system will not allow operators to exceed cost restriction parameters defined by ISS or the client without approval (see example at left).

• Because all products are serialized, we track every part and employee that interacts with a product at every stage of the reman process. This accountability eliminates costly recurring errors.

• If there are bulletins issued on a given product, our software can require the operator to perform the modification before proceeding. This cuts time and eliminates reman returns.

• We create BOM’s for individual units, so every time a part needs replacing we automatically pull related parts. This reduces picking times and eliminates costly mistakes.

• We manage a rigorous process for tracking units failed in the field. Any product that returns within a year of reman automatically undergoes a full diagnostic test. A separate log is maintained to identify trends between returned products.

6Page

Our decades of experience in remanufacturing have allowed us to really drive Total Cost Management. We know the benchmarks to reach for, and we know the best processes to reach them. The following are just a few areas where our experience can help your company drive down cost, improve quality and speed time to market.

R e m a n E x p e r i e n c e

Maximum value of parts allowed.

Current dollar value of parts.

Message warning operator job exceeds price limits, and must receive supervisor approval for override.

Confidential

6 7Page

Reduce Tooling Costs & Speeding Up Re-Tooling

We have lengthy experience in moving tooling from high-volume manufacturers to low volume suppliers. Our engineers, purchasers and suppliers all operate with the mind set of reducing costs for low-volume tooling. We can generate new tooling for components as quickly as 12-16 weeks.

Reduce Material Management Costs

Because ISS has managed end-of-life-cycle parts for decades, we have developed nimble processes to carefully balance customer demand with small-volume manufacturing and inventorying. Our systems reduce inventory carrying costs, and allow our clients to pay for parts more closely to when they are needed.

Because our processes are based on low volume, our equipment could significantly reduce testing costs and while speeding throughput.

Reman

Ship to customer

Standard Reman Model

Core

Remanned Inventory

Reman

Ship to customer

ISS LeanReman Model

Core

Remanned Inventory

Raw Core Inventory

Inventory sits without remanufacturing until ISS projects a seasonal need

for product.

Reduce Core Management Costs

Our core management program tracks demand and supply for finished product. Cores that are not currently needed are stored without addition of any parts or labor (as Raw Cores). If demand increases, those Raw Cores are then remanned. This lean system means clients only pay for remanufacturing it actually needs, minimizing inventory and labor costs.

RemanR e m a n E x p e r i e n c e

Confidential

8Page

Instrument cluster in tester.

Computer evaluating and passing cluster.

Every product is tracked by bar code throughout the reman process.

Door Door

1 71. 0 in. x 70 8.0 in .

Roo m

Ca

ble

cra

ft b

ench

Ca

ble

craf

t P

ress

Cab

lec

raft

T

este

r

Cable cra ft sa w

Wire r acks

Cra malo t

This is e lectr ical an d wa ter pipe s

AA

35657 1

356

co

mp

ute

r

O

scop

e

B oo k s h e lf

A

C

E

G H

A

B

Cable rack C abl e r ack

D

A

oven

DD

D

D DDA

A

B

B

B B

D

E

Erg

ono

mic

benc

h

Ro l lersRollers

Ro

llers

R adi o exte nded t est er

Desk

Desk

Smal l gray

cabinet

R edc abinet

LargeGray

c abinet

J

Alp

ha

Alp ha

BSh ri nk wr apma chine

I

A

UR T

E

2 5

E

E

E

R

3 '-0"

240v

X 4X 2

X 4

Tech cabinet

240v

ELEC Storage

Po wer & CAT 5

Rece iving Phon e

Dr iver’s Tab le

Dr iver L ogs

Sh

ipping

Supp

ly Shelve

s

F ed Ex

UPS

Pow

er & C

at 5 x 2

Boxe

r

Box s tation

Air & Po wer

Po

wer &

CA

T 5

Pow

er & C

at 5

Pow

er &

C

AT

5

Pow

er &

C

AT

5

X 4

Expansion Drop

Power & CAT 5 & Phone

X 2

Air Dro p ?

Com pr essor

1 10 powe r

Wil l Call Station

Credit Card

Machine

Up

X5

Will c all Phone

110

X 3

1 10 Vo lts Ca t 5

X 3

X3

X3

X 7

X 12 X 4

X 4

X 10

X 8

X 4

X 1

5

X 12

X 4

X 5

X 4

X 10

X 4

240v

440

Vol

ts

44 0 Volts220 Vo lts

X4

x5

10'-0"

11'-0

"

13'-3

"

10'-5

"

11'-0"

Door Door

44 0 Volts

Tras

h C

ompa

ctor

Compressor

Server room

1 10 Vo ltsTop of t he wa ll For wirele ss

11 0 Volts

11 0 Volts

11 0 Volts

x9

10'-0"

1'-0"

3'-0

"11

'-6"

3'-0

"

16'-0

"

X 8X

4

9'-0"

D oor

Elec trical Area Electrical Area

Fork Lift Charger

440

volts

Door

220 Racks 2X4X8 Feet

3'-2

"

EE

Initial Tes t

H

URT

U RT

Fina l test

9'-3

11

/16"

E

EE

Door

E

13'

-3"

6'-1

/16"

Da ta En tryParts ex pedi tor

RollersRol lersR ol ler s

Parts ex pedi tor Parts ex pedi tor

EHVAC Te ch Be nch

R ol lers

SAP

ROS

Tap e M ach in e Table

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

GD

GD

GD

GD

GD

NR

SSSS

SS

SSSS

SSSS

SSSS

SS

SSSS

MM

M

PP

PP

PP

PWPW

FLFL

FLFL

F F

F FFF

FF

OO

HH

HH

HH

HH

H S

SS

SS

SS

SS

PPPP

PP

PP

X10

X 4

X 5X 4

R e m a n H Q

The current Kent Reman Facility floor plan.

Kent (Seattle), Washington

Along with our Reman HQ, we have three

other locations that can ramp up for new

reman work.

Confidential

8 9Page

Automated packaging.

Instrument cluster in tester.

Computer evaluating and passing cluster.

Extended Test Fixture: Allows for long-term testing for complaints that can not be bench duplicated.

Reman

Confidential

10Page

E n g i n e e r i n g F l e x i b i l i t y

ISS can understand such a diverse array of products because we have a staff of electrical, mechanical, software, manufacturing, validation and quality engineers in house. We also use contract engineering resources as needed. We have dozens of other past model service programs that we support with complete turnkey engineering services.

In the event that a critical component goes end of life ISS can assume full responsibility for all engineering and quality functions.

For example, on our other programs if a component becomes unavailable ISS initiates the redesign of the board to accommodate a new component and follows that process all the way through from initial design to validation testing and finally to Product Warrant Submission.

Confidential

10 11Page

ISS engineering is focused on assisting our customers solve any of their product engineering problems in a timely manner. We can take a customer’s existing product and build it exactly to their print.

If there are quality problems with their current product, we have the expertise to trouble shoot those issues and ensure they aren’t present when we start production.

If there are no prints or specifications available, we have the capabilities to test and reverse engineer any product based off samples.

We work with our customer, their current vendors, and many of our internal/external resources to help transition and realize these programs very quickly.

Our engineering team understands every step of the product realization process. We meet all of our customer’s critical product characteristics and documentation requests. We have in-house Solidworks 3D modeling and prototyping capabilities. We have extensive knowledge of manufacturing processes. We are able to transfer, consolidate, improve, or build new tooling, test fixtures, jigs, and complete work cells. This work is done domestically at our ISS facilities.

Before any products are sent to the customer ISS engineering will work with the customer to determine a proper validation/verification plan, and we will ensure that the product passes all tests with flying colors. ISS is able to expedite this whole realization process while still meeting the strictest quality and documentation requirements.

We have a staff

of electrical,

mechanical, software,

manufacturing,

validation and quality

engineers in-house.

They can operate as

extensions of your own

engineering team.

ManufactureE n g i n e e r i n g F l e x i b i l i t y

Confidential

Manufacturing to the TS Standard:

Every part that ISS manufactures must adhere to our ISO/TS 16949:2009-based quality processes. Every item is meticulously documented in our NPI (New Product Introduction) Process to ensure that everything we make consistently meets or exceeds the form, fit and function of the OE part we are designing from. Every new client will receive the exact same level of consistent quality that we provide to GM at a Tier-One level.

12Page

ISS can help streamline every stage of product realization.

S o u r c i n g E x p e r i e n c e

Through the years ISS has developed extensive experience identifying, qualifying, auditing, and managing suppliers that can deliver the breadth, quality and low cost that your company seeks. We now have trusted relationships with dozens of proven suppliers who can deliver scalable volumes, from a few hundred to a hundred thousand.

Source Management:

ISS can manage every stage of the manufacturing process, including:

• Physically visiting and inspecting the manufacturing plant before production, including inspecting plant’s current product samples

• Inspecting and verifying prototype product before production

• Providing the plant specific instruction to ensure production meets our quality standards

• Inspecting and verifying initial production run for product quality

• Performing return audits to the plant to continually verify production meets our standards

• Ensuring all packaging meets the client’s requirements

• Performing final quality inspection at our Portland or Kent ISS facility to ensure the parts meet our TS standards

ISS can be a

primary or

supplementary

source for virtually

any low volume/

high mix electro-

mechanical part

that your company

needs.

Confidential

Our facilities at two of the seven largest ports on the West Coast make us the perfect strategic location for delivering product sourced from Eastern Asia. Our clients have been able to save time and improve quality by relying on us and our decades-tested network of overseas suppliers. Thanks to the specialized expertise we have developed, we offer the best pricing, selection, quality and speed to market possible.

12 13Page

ManufactureS o u r c i n g E x p e r i e n c e

ISS has the supplier network, Engineering capability, re-validation expertise and experience to source every component typically utilized in Electronic and Electro-mechanical Automotive Products.

This includes complete Printed Circuit Boards (PCB’s) and component Integrated Circuits (IC’s).

Confidential

14Page

Samples of tooling from our in-house tooling facility that ISS uses to speed the process of manufacturing. Because ISS performs this tool making in-house, it gives us the flexibility to shave off weeks from standard tooling modification and production for our clients.

M a n u f a c t u r i n g H QC o r p o r a t e H Q

Portland, Oregon

Confidential

14 15Page

This location specializes in sourcing, importing, engineering, manufacturing, distrubtion and logistics.

• On-site engineering staff

• On-site tool manufacturing facilities

• On-site sourcing and logistics staff

• On-site incoming inspection capabilities for all foreign-sourced product

• EDI fulfillment capabilities

• Sub-assembly capabilities

• ISO9001:2008; ISO/TS 16949:2009 Standard

Manufacture

Instrument being assembled in our Portland facility for Harley Davidson.

Confidential

16Page

Over the years, ISS has managed a number of major product transitions for GM and its Tier-One suppliers. The following are some examples:

• ISS manufactures under a license agreement thousands of Genuine GM Parts that it ships directly to distributors.

• ISS remanufactures tens of thousands of radios and instrument clusters under warranty for GM/Delphi. Going from one of nearly a hundred reman centers in the 1990’s, ISS has adapted its processes so that it is now one of seven. It consistently ranks highest among those centers in a number of key benchmarks, including lowest cost.

• ISS manufactures thousands of fuel sensors that ship directly to GM dealerships via orders processed through EDI.

• ISS also manufactures and ships thousands of fuel sensors that ship via pallet directly to GM customers.

T r a n s i t i o n E x p e r t i s eTransitioning an existing product line is much different from launching a new program. It involves everything from managing complicated relationships with other vendors to re-balancing inventories to re-tooling to reorganizing staff, plus a hundred other challenges.

We have helped manufacturers through the transition process numerous times. Although each time is different, our experience has helped us learn how to ask the right questions and develop the right processes to optimize Total Cost Management. We use this “Transition Template” for all business transfers.

For example, if a client asks us for remanufacturing services, we ask them if they also want to cut costs and simplify part sourcing, warranty exchange, and perhaps distribution.

We work closely with your tier-one and tier-two suppliers, buyers, planners, logistics team and engineers to make it easy. It’s second nature to us—we too are tier-one and tier-two suppliers, and we have our own buyers, planners, logistics team and engineers on staff fully trained in product transitions.

As a result, every major product transition we have managed in the past decade has been a success.

ISS uses a number of project management tools to coordinate the transition of a product line. This is an actual GAANT chart from a past project.

Confidential

16 17Page

Over the years, ISS has managed a number of major product transitions for GM and its Tier-One suppliers. The following are some examples:

• ISS manufactures under a license agreement thousands of Genuine GM Parts that it ships directly to distributors.

• ISS remanufactures tens of thousands of radios and instrument clusters under warranty for GM/Delphi. Going from one of nearly a hundred reman centers in the 1990’s, ISS has adapted its processes so that it is now one of seven. It consistently ranks highest among those centers in a number of key benchmarks, including lowest cost.

• ISS manufactures thousands of fuel sensors that ship directly to GM dealerships via orders processed through EDI.

• ISS also manufactures and ships thousands of fuel sensors that ship via pallet directly to GM customers.

Recent SuccessesIn the past year ISS has been awarded several large contracts from major vehicle and parts manufacturers. Although we are not at liberty to disclose details, the volume is substantial. They involve the remanufacture and manufacture of a variety of:

• Instrumentation • HVAC controls

• Electronic control modules • Fuel systems

ISS was selected in each case against the best competitors in the business on the basis of:

• Financial Viability • Product Quality

• Organizational Depth • Delivery Lead Times

• Reman Capabilities • IT Infrastructure

• Reporting & Data Management • Pricing

ISS knows

how to push

through product

transitions.

T r a n s i t i o n E x p e r t i s eISS uses a number of project management tools to coordinate the transition of a product line. This is an actual GAANT chart from a past project.

Confidential

18Page

P o t e n t i a l P r o g r a m s

Wire Harness

Power Antenna

Fuel Delivery Module

Electronic Connectors & Connector Housings

Fuel Pump

Fuel Sender

PRNDL Indicator

Interior Dash & Console Switches

LCD DisplayHigh-Content

Rear View Mirror

BodyControl Module

Power Window Switch

HVAC Control

Confidential

18 19Page

Reman ManufactureP o t e n t i a l P r o g r a m s

Pressure Sensors Pickup Coil

Audio

Distributor Cap

Ignition Coil

Interior Dash & Console Switches

Operator Interface System

Coolant Level Probe

Instrument Cluster (Complete) Round Case Gauge Speedometer , Tachometer, Other

Instrument Cluster Components Air Cores (One Inch & Mini) Air PressureAmmeterElectrical & Mech GaugesFuel LevelMechanical OdometerOil PressureOil TemperaturePointersReplacement Lenses SpeedometerTachometerVoltmeterWater Temperature

Temperature Sensor

Let’s talk about

where you see

the biggest

opportunities

to partner with

ISS to supply

high mix/low

volume electro-

mechanical parts

for manufacture

or reman.

Confidential

Corporate Headquarters Portland, Oregon

Confidential

InstrumentSales.com

Portland • Seattle • Denver • Phoenix • Detroit

F l e x i b i l i t y | E x p e r i e n c eTr a n s i t i o n E x p e r t i s e | F o c u s

Since 1949 ISS has maintained a business strategy that is focused on instrumentation, sensors, and other mechanical-electronic equipment. It is the only thing we do. That laser-like focus is the reason we are able to offer our unique levels of flexibility, experience, and product transition expertise. Our business strategy is to do one kind of product and do it extremely well, delivering it in whatever way our clients need.

Because of that focus, we make it easy for companies like yours.

Value Add(Reman or

Engineering orSourcing or

Manufacturing, etc)

Outputto

market

Electrical-mechanical

parts

Engineering

ISS

Sourcing Manu-facturing

Distribution Reman & Exchange

Typical Parts Supplier

Unrelated parts

Unrelated parts

Unrelated parts

Unrelated parts

Outputto

market

Outputto

market

Outputto

market

Outputto

market

Outputto

market

Key Contacts

Scott HaugenPresident Portland, ORshaugen@instrumentsales.com 800-333-7976 x358

Lawrance Griffiths Director Business Development Detroit, MIlgriffiths@instrumentsales.com 248-910-1581

Jeff EilersProduct Realization Manager Portland, ORjeilers@instrumentsales.com 800-333-7976 x337

F o c u s